For centuries business models have tried to derive as much
internal value as possible using timesheets, clock cards and
ordering supplies closely aligned with production timelines.
Businesses were striving for effi ciency, zero defects and effi
cient monthly fi nancial reporting which lead to the creation of
expected Shareholder value and thus this blueprint worked well.
Businesses were striving for effi ciency, zero defects and effi
cient monthly fi nancial reporting which lead to the creation of
expected Shareholder value and thus this blueprint worked well. One
question you should be asking yourself is “how can you develop the
resilience you need to strategically and eff ectively meet this new
challenge? The answer is - invest in your Supply Chain.
Deployed strategically, procurement can help fi rms build whole
constellations of value—rather than simple chains of value—in which
stakeholders of all sorts are connected to one another holistically
and dynamically (Harvard Business Review).
Building resilienceInvesting in Supply Chain
Building resilience - Investing in procurement 1
Considerations in Futureproofing your business through Investing
in Supply Chain• Deciding what to sell during and after the
COVID-19 pandemic will depend on what you are able to source and
procure
• Solid relationships in your supply chain and customers is a
great approach to building resilience As apposed to just focusing
on the financial aspect, solid relationships in supply chain and
with customers is a great approach to building resilience
• This is an opportunity to move the country forward and comply
with the B-BEEE act and support black owned businesses in
localising part of your supply chain i.e. while you may be
importing, there is an opportunity to also buy local and help
develop industries
• Designing and building a resilient value-creating system
requires human competences outside the classic transactional
procurement toolkit. This can be achieved by the use of technology
and digitizing the Supply Chain Management processes
• These designs bring about a new culture of procurement that,
compared to the traditional model, is more networked (less centered
on dyads), less transactional (win-lose), involves longer time
horizons, and is more collaborative (win-win)
• Procurement extends from just defining work-sharing (make-buy)
and risk-sharing (warranties, etc.) to co-designing the offering
and the R&D that it requires.
Contact
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T +27 86 117 6782M +27 83 376 1978E [email protected]
Yugen PillayDirector and National Leader - Business
Consulting
SNG Grant Thornton’s Supply Chain solutions• Supply Chain
Analysis for Strategy and
B-BBEE purposes• Verification of Suppliers • Outsourcing of
supply chain • Development/update of B-BBEE policies and
procedures; • ESD strategies and implementation projects•
Procurement advisory• Internal audit of SCM function and
implementation of related projects • Risk assessment of Supply
Chain
Management function
